Might an idea from Mitt Romney save US from 'fiscal cliff'? (+video)(Read article summary)
Mitt Romney has suggested putting a cap on income-tax deductions. Would the GOP back it? That's uncertain, but it would generate a lot of money and hit only the wealthiest Americans.
At first glance this seems unlikely – Democrats often accused Mr. Romney of making vague assertions instead of actual policy proposals, particularly on fiscal issues. But at one point the GOP nominee did float the notion of a cap on income tax deductions. Some experts now say such a limit could be an important element in a deficit-reduction agreement palatable to both parties.
“A cap just might be a Republican-friendly way to get what Democrats want,” writes Matthew O’Brien, associate editor for business and economics at The Atlantic.
If you recall, during the campaign the cap thing came up in the context of how to pay for Romney’s proposed across-the-board 20 percent tax rate reduction. The former Massachusetts governor vowed that this reduction wouldn’t cost the US Treasury anything, in part because he’d eliminate deductions and close loopholes to keep tax revenue up.